A spokesman for the Department for Work and Pensions said people on the scheme, which provides work experience placements for 16 to 24-year-olds claiming Jobseeker's Allowance, could now end their placements at any time without losing benefits. The decision was made after a meeting with employers.

Mind, which said earlier this month that it would end any work experience placements in the organisation undertaken by claimants in fear of losing their benefits, said it would now be willing to take people on the scheme.

A spokesman for the charity said: "We wanted to make sure that, for anyone in a voluntary role in any part of Mind, their placement was not mandatory."

He added that other government programmes still required claimants to do work placements in order to get benefits, and this remained a concern.

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